Sotera Health Company (SHC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 4.4% to $324.9M; adjusted EBITDA increased 3.9% reported and 4.0% constant currency, and adjusted EPS rose 12% to $0.29.

• Sequential adjusted EBITDA margin expanded ~100 bps to 52.5%; net leverage improved to 2.9x, and FY26 constant-currency growth guidance was reaffirmed.

Financial highlights

• Q3 net revenue was $324.9M versus $311.3M; GAAP net income was $58.4M versus $48.4M, and diluted EPS was $0.20 versus $0.17.

• Q3 adjusted EBITDA was $170.7M versus $164.2M; 9M revenue was $926.3M versus $860.2M, and 9M adjusted EBITDA was $471.1M versus $436.8M.

• Q3 service revenue grew 8.4% to $277.1M, while product revenue declined 14.3% to $47.8M, mainly due to Co-60 shipment timing.

• 9M operating cash flow was $228.5M, including $111M in Q3; 9M capital expenditures were $145.5M.

Outlook and guidance

• FY26 revenue guidance remains $1.233B–$1.250B, or 5.25%–6.75% constant-currency growth; adjusted EBITDA guidance remains $632M–$641M, or 5.75%–7.25% growth.

• Adjusted EPS guidance remains $0.95–$1.01; adjusted EBITDA margin is expected approximately flat YoY.

• Interest expense guidance is $137M–$140M; adjusted net income tax rate is 27.0%–28.0%, and capex guidance is $200M–$225M.

• Assumed FY26 FX benefit to revenue and adjusted EBITDA is 70 bps; Q4 FX is expected to be a headwind of more than 100 bps.

• Segment revenue outlook: Sterigenics mid- to high-single-digit constant-currency growth, Nordion mid-single digits, and Nelson Labs low- to mid-single digits.